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Title page 1

Contents 8

Foreword 4

Abbreviations and acronyms 5

Executive summary 6

1. Introduction 10

1.1. Causes and consequences of skill imbalances 11

1.2. Definitions and measures of skill imbalances 12

2. Methodological considerations 16

2.1. Indicators of occupational imbalances 17

2.1.1. Wages 18

2.1.2. Employment 19

2.1.3. Unemployment rate 19

2.1.4. Hours worked 19

2.1.5. Vacancies 19

2.1.6. Underqualification 20

2.2. Method behind the Skills for Jobs Indicator 22

2.2.1. Step 1: Computing occupational imbalances 22

2.2.2. Step 2: Translating occupation shortages into skill shortages 25

3. Occupational imbalances, skill shortages and policy implications 27

3.1. Occupational imbalances 28

3.1.1. Occupational imbalances over time 32

3.1.2. Occupational imbalances at the industry level 38

3.2. Knowledge, abilities and skill shortages 40

3.2.1. Knowledge shortages 40

3.2.2. Ability shortages 42

3.2.3. Skill shortages 43

3.3. Policy implications 45

References 49

Annex A. Supporting material 62

Notes 80

Tables 9

Table 3.1. High-skilled occupations are generally in shortage 29

Table 3.2. Middle-skilled, non-manual occupations are generally in surplus 30

Table 3.3. Lower-skilled occupations are generally in surplus 31

Table 3.4. Shortages are persistent in the OECD Member countries 33

Table 3.5. Occupational imbalances in Australia from 2019-2025 34

Table 3.6. Occupational imbalances in France from 2019-2024 35

Table 3.7. Occupational imbalances in the United Kingdom from 2019-2024 36

Table 3.8. Occupational imbalances in the United States from 2019-2024 37

Figures 8

Figure 2.1. Labour market signals underlying the Skills for Jobs Indicator 18

Figure 3.1. Key industries face significant shortages 39

Figure 3.2. Growth in OJP and wage point to shortages for occupations in the accommodation and food services industry, while hours worked and... 40

Figure 3.3. Knowledge areas associated with high-skilled occupations are generally in shortage 41

Figure 3.4. Cognitive abilities are in shortage, while physical and psychomotor abilities are in balance 42

Figure 3.5. Essential, social and system skills are in shortage, while remaining skills are closer to balance 44

Figure 3.6. Low representation of women among ICT professionals and technicians 46

Figure 3.7. Low representation of men and younger workers among health professionals and health associate professionals 47

Figure 3.8. Teaching professionals include relatively few men and younger workers 48

Boxes 13

Box 1.1. The evolution of the concept of skills in economics 13

Box 1.2. Terminology 15

Box 2.1. Approaches to measuring imbalances 17

Box 2.2. COVID-19 impact on labour market indicators 21

Box 2.3. Definitions of the signals underlying the occupational imbalance indicator 23

Box 2.4. O*NET occupation profiles and their use for the Skills for Jobs Indicator 25

Box 3.1. Policy recommendations for occupations facing the greatest shortages in OECD Member countries 46

Annex Tables 9

Table A.1. Overview of data and country-specific indicator specifications 62

Table A.2. Occupational imbalances for the latest available year, by industry and country 72

Table A.3. Knowledge shortages for the latest available year, by country 74

Table A.4. Ability shortages for the latest available year, by country 76

Table A.5. Shortages of essential skills for the latest available year, by country 77

Table A.6. Shortages of transferable skills for the latest available year, by country 78

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